PRESS RELEASE
FOR RELEASE MAY 12, 2004 AT 4:00 P.M.
For More Information Contact
David Meadows
(410) 256-5000
Baltimore County Savings Bank
BCSB BANKCORP, INC.
REPORTS RESULTS OF MARCH 31, 2004 AND
FILES AMENDMENT TO DECEMBER 31, 2003 QUARTERLY REPORT
BCSB Bankcorp, Inc. (NASDAQ: BCSB), the holding company for Baltimore County
Savings Bank, FSB, recorded earnings of $161,000 or $.03 for the quarter ending
March 31, 2004. This compared to $779,000 or $.14 per share for the same period
in 2003. The reduced earnings reflect reduced interest income during the quarter
as interest and fees on loans decreased along with the average balance of loans
receivable. Management attributed the decreases to increased competition in the
mortgage refinance market, current economic conditions and management's
reluctance to make long term loans in the low interest environment that existed
during the quarter. For the six months ending March 31, 2004, total assets
equaled $731 million as compared to $668 million on September 30, 2003, an
increase of $62.5 million. Total deposits continued to rise to $578 million as
of March 31, 2004 as compared to $552 million on September 30, 2003.
The Company will shortly be filing an amendment to its Quarterly Report on Form
10-Q for the quarter ended December 31, 2003 to restate its consolidated
statement of financial condition as of December 31, 2003 and its consolidated
statements of operations for the three months ended December 31, 2003 to correct
the accounting treatment for a Bank Owned Life Insurance ("BOLI") policy.
Subsequent to the issuance of the Company's consolidated financial statements as
of and for the three months ended December 31, 2003 and the filing of its
Quarterly Report on Form 10-Q for the quarter ended December 31, 2003, the
Company determined that it had incorrectly accounted for its income tax
provision related to the BOLI policy. The effect of the restatement is to reduce
the Company's income tax provision to $53,708 for the three months ended
December 31, 2003 from $91,560 previously reported, thereby increasing net
income from $188,057, or $.03 basic and diluted earnings per share, to $225,909,
or $.04 basic and diluted earnings per share. Total stockholders' equity at
December 31, 2003 increases to $44,309,111 from $44,271,259 previously reported.
BCSB Bankcorp, Inc. is the holding company of Baltimore County Savings Bank, FSB
which was founded in 1955. The Bank currently operates sixteen offices
throughout the Baltimore metropolitan area. BCSB Bankcorp, Inc. became a
publicly traded mutual holding company in July 1998.
This press release contains statements that are forward-looking, as that term is
defined by the Private Securities Litigation Reform Act of 1995 or the
Securities and Exchange Commission in its rules, regulations, and releases. The
company intends that such forward-looking statements be subject to the safe
harbors created thereby. All forward-looking statements are based on current
expectations regarding important risk factors, including but not limited to real
estate values, local and national economic conditions and the impact of interest
rates on financing. Accordingly, actual results may differ from those expressed
in the forward-looking statements, and the making of such statements should not
be regarded as a representation by the company or any other person that results
expressed therein will be achieved. The Company does not undertake, and
specifically disclaims any obligation, to publicly release the result of any
revisions that may be made to any forward-looking statements to reflect events
or circumstances after the date of such statements or to reflect the occurrence
of anticipated or unanticipated events.
BCSB Bankcorp, Inc.
Summary of Financial Highlights
Consolidated Statements of Financial Condition
(Unaudited)
March 31, September 30,
2004 2003
--------- -------------
(Dollars in Thousands)
ASSETS
Cash, equivalents and time deposits $ 16,064 $ 23,308
Investment Securities 159,647 123,790
Loans and Mortgage Backed Securities 522,231 499,901
Other Assets 32,835 21,109
--------------- ------------------
TOTAL ASSETS $ 730,777 $ 668,198
LIABILITIES
Deposits $ 577,599 $ 551,929
Borrowed Money 48,718 32,268
Trust Preferred Securities -- 22,500
Junior Subordinated Debentures 23,197 --
Other Liabilities 35,440 16,733
--------------- ------------------
TOTAL LIABILITIES $ 684,954 $ 623,430
TOTAL STOCKHOLDERS' EQUITY 45,823 44,768
--------------- ------------------
TOTAL LIABILITIES & STOCKHOLDERS EQUITY $ 730,777 $ 668,198
Consolidated Statements of Operations
(Unaudited)
6 Months ended March 31 3 Months ended March 31
2004 2003 2004 2003
---- ---- ---- ----
(Dollars in Thousands) (Dollars in Thousands)
Interest Income $ 15,470 $ 17,336 $ 7,660 $ 8,654
Interest Expense 7,856 8,231 3,912 4,045
------------ ----------- ---------- ----------
Net Interest Income $ 7,614 9,105 $ 3,748 $ 4,609
Provisions for Loan Losses 267 412 86 130
------------ ----------- ---------- ----------
Net Interest Income After Provision for Loan Losses $ 7,347 $ 8,693 $ 3,662 $ 4,479
Total Non-Interest Income 974 952 448 526
Total Non-Interest Expense 7,857 7,655 3,926 3,747
------------ ----------- ---------- ----------
Income Before Income Taxes $ 464 $ 1,990 $ 184 $ 1,258
Income Tax Provision 76 759 23 479
------------ ----------- ---------- ----------
NET INCOME (LOSS) $ 388 $ 1,231 $ 161 $ 779
------------ ----------- ---------- ----------
Basic Earnings (Loss) Per Share $ 0.07 $ 0.22 $ 0.03 $ 0.14
------------ ----------- ---------- ----------
Diluted Earnings (Loss) Per Share $ 0.07 $ 0.21 $ 0.03 $ 0.14
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